Growers urged not to vote for end of potato scheme

made on both sides of the Border against ending the scheme and winding

up the Potato Marketing Board.

Scottish Agricultural College economist John Anderson argues that,

while the present arrangements for marketing the crop are far from

perfect, the fundamental objective should be to achieve as ''seamless a

rollover as possible'' to a new organisation to replace the PMB.

Those who want a complete break are choosing to ignore the facility to

make this seamless rollover permitted under the 1993 Agricultural Act --

but not possible under the old Act setting up the Potato Marketing

Scheme, which governs the rules applying to the poll and its outcome, he

points out in the SAC's monthly economic survey.

Voting 'No' does not preclude the potential for very substantial

changes to be made in determining the future role of any new

organisation, and how it should operate. What remains of the current

scheme has to end by 1997 under Government proposals, and the PMB

chairman has already indicated his wish to pre-date that deadline by at

least a year.

Even then, it does not follow that the present incumbents will

necessarily survive the transition. The PMB board will be cut from 26 to

13 members in a contested vote in the autumn, assuming the poll calling

for revocation is unsuccessful. In due course these individuals, and the

permanent support staff, will be reduced further, or replaced by others

with more appropriate skills.

According to Mr Anderson, the almost unthinkable alternative of having

nothing, or having to create something from scratch probably without

much Government encouragement, is ''a risk really not worth taking.''

On the controversy over how much would have to be raised by levy to

fund a new organisation, he declares: ''As the chief executive of the

PMB has pointed out, you can't do much with #2m these days -- quite

rightly referring to the much higher sums being contributed by

competitors, often working in a less profitable environment than many GB

growers enjoy.

''In passing, #2m is only 0.5% of the farm gate value of the GB

industry, before starting on the value-adding activities of processors

and others who also benefit from the research and other activities

undertaken. Between 5% and 10% of factory gate value is much nearer the

norm for R & D expenditure, promotion, and information services in other

industries.''

Mr Anderson believes one of the biggest lessons to be learned from the

present situation is the importance of communication, on the basis that

a great many growers probably do not appreciate what has been achieved

on their behalf over the years in terms of research and the provision of

market information and statistics.

This material doesn't just happen -- it represents a great deal of

work, much of which is directly available to producers and others in the

industry. Much of value is also added to the knowledge of organisations

such as the SAC, so adding to their ability to help with problems.

Emphasising that a 'No' to revocation does not mean a vote for the

'same old thing,' he claims it will be a vote for the quickest and most

certain transition to a new organisation, whose objectives will be set

after appropriate consultation with the industry.

Meanwhile, Sir David Naish, president of the English National Farmers'

Union, has been advising producers to take a ''positive decision'' to

safeguard the future of their sector in the years ahead by voting 'No'

to revocation of the Potato Marketing Scheme.

Although earlier this year the then Agriculture Minister, Gillian

Shephard, announced changes to the potato sector which will effectively

mean an end to the scheme by 1997, he warns that the NFU remains

determined to persuade the Government to continue the scheme beyond that

date.

''Changes in the years ahead are inevitable, as in any other

business,'' he concedes. ''But at least with the scheme retained, it

means those involved in the potato sector can debate all the available

options in a reasoned atmosphere.

''Any move to scrap the scheme now would lead to unnecessary

bitterness and rancour.''

* FRESH and processed potato interests will be joining forces at next

month's World Potato Congress at Harrogate (September 11 to 13) to

combat the threat to consumption from rice and pasta.

A series of open sessions and workshops on the opening day will look

at the progression of both markets into the 21st century, and how the

relationship between fresh and processed potatoes can be compatible,

rather than competitive.